§ Viscount Montgomery of Alameinasked Her Majesty's Government:
When they intend to make regulations to extend compulsory competitive tendering to all local authority highway work by abolishing the present competition-free allowance.
§ The Parliamentary Under-Secretary of State, Department of the Environment (The Earl of Arran)Regulations made under Sections 7, 9 and 23 of the Local Government, Planning and Land Act 1980 amending the Local Government (Direct Labour Organisations) (Competition) Regulations 1989 were laid before the House on 10th June. These come into force in England on 1st April 1995. The Government have consulted representatives of local authorities on these proposals, and the start date of 1st April 1995, seven months later than first proposed, reflects authorities' comments, and allows additional time for authorities to carry out tendering.
The regulations abolish the present 40 per cent. competition-free allowance for small general highways jobs undertaken by local authority direct labour organisations and remove the exemption from competition of winter maintenance work. Recent Audit Commission research showed that the progressive extension of competition for highways work had produced cost savings while maintaining standards of service. These amendments are in accord with the Government's aim to increase the areas of local authority work subject to competition to promote greater efficiency, to give greater value for money to local taxpayers, and to improve the quality of services.